Iran Establishes New Agency to Oversee Strait of Hormuz Amid US Peace Talks

May 7, 2026

61 min

May 7, 2026 23:30

US-Iran talks: Iran creates new agency to control shipping in Strait of Hormuz while reviewing peace deal with US

## Rising Tensions in the Strait of Hormuz

Iran has formed a new governmental body to regulate and tax vessels passing through the Strait of Hormuz, a critical maritime chokepoint for global oil shipments. This move comes as Iran reviews a 14-point proposal from the US aimed at resolving ongoing hostilities.

## Recent Clashes and Diplomatic Efforts

The situation remains tense following a US military strike on an Iranian oil tanker in the Gulf of Oman. Despite a ceasefire, President Trump has warned Iran of potential renewed military actions if a peace agreement is not reached. Meanwhile, China has called for the reopening of the strait and urged restraint from both sides.

## International Reactions and Economic Impact

The US, along with Gulf allies, is pressing the UN to condemn Iran's blockade of the strait, though Russia has indicated it may veto any resolution. The conflict has already impacted global markets, with Germany projecting significant tax revenue losses due to the energy crisis.

## Hope for Resolution

Despite the volatility, there is cautious optimism that negotiations could lead to a ceasefire and broader diplomatic discussions. The proposed US framework includes sanctions relief and future talks on Iran's nuclear program and regional security.

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